2013–‘14 Salaries & Benefits

Budget

Board of EducationMarch 12, 2013

Salaries & Benefits Budget Overview

► Largest component of the budget♦ Driven by labor contracts

▪ Salaries▪ Health & other benefits

♦ Retirement♦ Represents 65% of total cy budget (70% net of debt

service)♦ Build “appropriated” fund balance into expenditure

▪ Typically $0 net budget impact

Salaries & Benefits Budget Assumptions

► Carry forward of current year staff► Includes retirement info

Salaries & Benefits Budget Assumptions

► Anticipated health insurance rates♦ Actual anticipated increase of 5.0% for NY 44 Health

Trust Plan♦ 3.4% for budget purposes

► 105(h) & other benefit provisions ♦ No change

► Summer 20 & 11 month pay♦ Consistent

► Teachers Retirement System 11.35% (9.50% in 2012-13)

► Employee Retirement System 13.50% (12.75% in 2012-13)

Salaries & Benefits Budget Models

► Salaries♦ PFA♦ PAA♦ Clerical♦ Admin♦ Head Custodians♦ Individual

► Health benefits♦ Health & other insurance♦ 105(h)

► ERS/TRS/FICA♦ Model provided within budget worksheet

Salaries & Benefits Budget Summary

2012-13 2013-14 $ Change % ChangeSalaries $22,487,219 $22,422,993 -$64,226 -0.3%Health Ins. 4,011,627 4,146,975 $135,348 3.4%ERS/ TRS 2,485,726 2,885,602 $399,876 16.1%

Other 2,158,211 2,205,299 $47,088 2.2%

Total $31,142,783 $31,660,869 $518,086 1.7%

Salaries

► Carry forward of current year staff♦ Reflects adjustment between BOCES and Pioneer staff♦ Food service clerical support from 0.50 FTE to 1.0 FTE

▪ $10,723

► Represents contractual increases► Summer 20 & 11 month pay

♦ Consistent (1,580 summer days)

► Assumes federal funds will stay at current levels

2012-13 2013-14 $ Change % ChangeSalaries $22,487,219 $22,422,993 -$64,226 -0.3%

Health Benefits & Retirement

► Health benefits♦ Health insurance

▪ NY44 Health Benefit Trust – 5.0% increase in premiums

♦ 105(h) ♦ Life insurance

► ERS/TRS

2012-13 2013-14 $ Change % ChangeHealth Ins. $4,011,627 $4,146,975 $135,348 3.4%ERS/ TRS 2,485,726 2,885,602 399,876 16.1%

New York State Teachers’ Retirement

Rates (TRS)

► Budgeted Employee Contribution Rate

♦ 11.35%♦ Long term focused♦ Objective is to minimize volatility

Employer Contribution

RateChange in

Rate% Change in

Rate

2002-'03 0.36% 0.00% 0%

2003-'04 2.52% 2.16% 600%

2004-'05 5.63% 3.11% 123%

2005-'06 7.97% 2.34% 42%

2006-'07 8.60% 0.63% 8%

2007-'08 8.73% 0.13% 2%

2008-'09 7.63% -1.10% -13%

2009-'10 6.19% -1.44% -19%

2010-'11 8.62% 2.43% 39%

2011-'12 11.11% 2.49% 29%

2012-'13 11.84% 0.73% 7%

2013-'14 16.25% 4.41% 37%

New York State Employees’ Retirement

Rates (ERS)2013-14 2012-13

Tier Rate Rate Change % Change

1 28.8% 25.4% 3.4% 13.4%2 26.3% 23.3% 3.0% 12.9%3 21.1% 18.7% 2.4% 12.8%4 21.1% 18.7% 2.4% 12.8%5 17.0% 15.2% 1.8% 11.8%6 11.6% - - -

New York State Employees’ Retirement

Rates (ERS)

Salary Year

ERS Contribution

Rate Change % Change

2009-10 7.10% - -2010-11 11.40% 4.30% 60.6%2011-12 12.80% 1.40% 12.3%2012-13 18.70% 5.90% 46.1%2013-14 21.10% 2.40% 12.8%

Tier 4

New York State Employees’ Retirement

Rates (ERS)

► Long Term Contribution Estimates

♦ 11.0% - 15.8%

Salary Year

ERS Contribution

Rate

2007-08 12.00%2008-09 12.50%2009-10 12.50%2010-11 12.50%2011-12 12.75%2012-13 12.75%2013-14 13.50%

Budgeted TRS & ERS

► Budget TRS & ERS for the long term…♦ TRS (12%-14%)♦ ERS (11.0% - 15.8%)

16.25%14.00%11.35%12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0%

Other Expense

► Other “people” driven expense♦ FICA (7.65%)

▪ Correlated with salaries

♦ Workers comp♦ Unemployment insurance♦ Disability♦ Separation benefit

2012-13 2013-14 $ Change % ChangeOther $2,158,211 $2,205,299 $47,088 2.2%

Appropriated Fund Balance & Reserves

► Spending plan does not ordinarily intend on using appropriated fund balance or reserves♦ Emergency purposes/flexibility♦ Approx. $1,800,000 exposed

Appropriated Fund Balance & Reserves

Appr. (Other) Total PY Total CY $ Change % ChangeCentral 110,000 1,552,127 1,734,518 182,392 11.8%HS 110,000 4,799,193 4,824,522 25,329 0.5%MS 110,000 4,455,336 4,505,387 50,051 1.1%Arcade 45,000 2,921,781 2,802,340 -119,441 -4.1%Delevan 45,000 2,316,601 2,234,585 -82,016 -3.5%Spec. Ed. 80,000 4,216,634 4,172,013 -44,622 -1.1%Curr 0 246,233 223,575 -22,658 -9.2%Tech 0 425,252 415,053 -10,200 -2.4%B&G 0 1,007,408 963,013 -44,396 -4.4%Trans 0 140,108 132,224 -7,884 -5.6%Athletics 0 406,547 415,764 9,217 2.3%Ant. Retirees. 0 0 0

Total Build/Dept. 22,487,219 22,422,993 -64,226 -0.3%

Health, Pension, Other 8,655,564 9,237,876 582,312 6.7%

ERS/ TRS/ FICA 220,000Health Insurance 120,000Grants 1,050,000

Total 1,890,000 31,142,783 31,660,869 518,086 1.7%

Enrollment InfoElementary Middle High Ungraded Total Change

2006-07 1,047 760 881 40 2,728 -2007-08 1,050 774 858 21 2,703 -252008-09 1,049 753 803 12 2,617 -862009-10 1,034 739 753 19 2,545 -722010-11 1,046 734 770 18 2,568 232011-12 1,041 752 766 18 2,577 92012-13 1,002 752 761 21 2,536 -41

Birth YearAge (2012-

13)Year to Enter K

Number of Births

Actual K Enrollment Diff. % Diff.

2002 10 2007-08 205 208 3 1.5%

2003 9 2008-09 169 177 8 4.7%

2004 8 2009-10 172 165 -7 -4.1%

2005 7 2010-11 163 168 5 3.1%

2006 6 2011-12 215 203 -12 -5.6%

2007 5 2012-13 180 174 -6 -3.3%

2008 4 2013-14 200

2009 3 2014-15 190

2010 2 2015-16 168

Presentations to date… Change ($)

Change (%)

Salaries & Benefits 31,142,783 66.3% 31,660,869 518,086 1.66%

Board of Education 29,200 0.1% 29,200 - 0.00%

Central Operations 567,008 1.2% 580,142 13,134 2.32%

High School 281,459 0.6% 281,459 - 0.00%

Middle School 176,472 0.4% 176,472 - 0.00%

Arcade Elementary 80,470 0.2% 80,470 - 0.00%

Delevan Elementary 77,643 0.2% 77,643 - 0.00%

Curriculum 50,825 0.1% 50,825 - 0.00%

Special Education 806,872 1.7% 766,750 (40,122) -4.97%

Technology 216,972 0.5% 216,972 - 0.00%

Athletics 210,505 0.4% 213,005 2,500 1.19%

BOCES

Transportation

Buildings & Grounds 1,403,862 3.0% 1,420,565 16,703 1.19%

Debt Service

Total 35,044,071 74.6% 35,554,372 510,301 1.46%

General Fund Budget 46,946,409

2012-13 Budget 2013-14 Budget